Wednesday, April 16, 2008

According to excerpts from various IRS web sites: Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS will take care of the rest. Eligible people will receive up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment.

Economic stimulus payments will be issued according to the last two-digits of the main filer's Social Security number. People who use direct deposit also will be among the first to receive the payments starting May 2. Paper checks will be put in the mail starting May 16.

DIRECT DEPOSIT

Last two SSN digits:

Payment will be transmitted:

00 through 20

May 2

21 through 75

May 9

76 through 99

May 16

PAPER CHECK

Last two SSN digits:

Payments will be mailed by:

00 through 09

May 16

10 through 18

May 23

19 through 25

May 30

26 through 38

June 6

39 through 51

June 13

52 through 63

June 20

64 through 75

June 27

76 through 87

July 4

88 through 99

July 11

People who file a return after April 15 will receive their economic stimulus payment, but probably about two weeks later than the schedule shows. A return must be filed by October 15 in order to receive a stimulus payment this year. See the online calculator for an estimate of the amount you will receive. "

Be aware that identity thieves are already pushing scams involving the stimulus payments. At least one telephone scam is making the rounds using the proposed rebates as bait. News release IR-2008-11, IRS Warns of New E-Mail and Telephone Scams Using the IRS Name; Advance Payment Scams Starting, has more details.

Thursday, April 10, 2008

Countrywide is now offering a 1-year CD with a 4.20% APY. For purchases between $10,000 and $250,000. We recommend keeping all CD purchases within FDIC insurance limits which are $100,000 for an individual. You can get more FDIC coverage by adding a "POD" or making it a "joint account." See your bank for details.

Wachovia has lowered this special rate to 3.15% with all other APY terms between 1.29% and 1.80%.

Wachovia's lowest regular rate today at 1.29% is for a 9-month CD. It looks like they lure you in with the special 3.15% rate then hope you let it roll-over and renew automatically at their lowest rate. Make sure you set your electronic calendar to remind you to renew for a different term, a different bank with better rates or a new special rate when the CD comes due.

Be careful when you go to your bank and ask for their best rate. They will often use that as an excuse to sell you an annuity that sounds good on the surface, but is far more profitable for them due to the higher fees.